Merchant Accounts: The Secret Gaining to Happy, Loyal Customers

Article Written By: Mort Paulsen

Most businesses accept credit and debit card payments these days. In fact, online sellers rarely accept any other method. The reason for this is simple: checks and money orders take too long to receive and process. But a credit or debit card payment can be completed in two to three days.

A merchant service account can be obtained at a bank or a reputable financial institution. Once approved, the bank will review each and every credit card payment that you receive to make certain that it is legitimate.

As you might expect, what we just explained is a simplified version of the process. Like any financial agreement, there are certain fees that a merchant should be aware of before he accepts the terms of the contract.

What to Know?

First, learn everything you can about merchant service accounts. This will give you the information you need to select a provider that offers the lowest fees without having to worry about surprises. It s a good idea to speak to an account representative about your unique business to get a sense of the fees and charges you can expect. An ethical merchant account provider will explain everything clearly and answer all of your questions in an upfront manner.

Because businesses process credit and debit card payments in different ways, there are different types of merchant accounts. At present, the two most popular ways to accept a payment is in person (retail account) or on the internet (online account). The reason that it is important to select the correct account is because they all offer different services and charge different rates.

A retail account is for businesses that actually swipe the customers credit cards and keep a physical copy of the sale, a receipt with a signature, for their records. But with an online account, the merchant will not have a receipt with a signature. This brings us to the chargeback.

A chargeback occurs when a customer calls his credit card company and demands a refund on a product. The company will then contact the merchant service provider and request a refund. If the refund is granted, the merchant will have to reimburse the provider for the cost for the refund and he may have to pay a series of fines.

Because chargebacks are far more common on the internet and retail users have signed proof of sale, online accounts always charges much higher transaction fees. Rates of up to eight percent per transaction are not at all uncommon. There is also the ever-present threat of internet thieves to consider.

Every business needs a merchant service account to stay afloat in today s economy. There is simply no way around it. What an owner can do, however, is make certain that he selects the right account for his business and his customers.

For retail establishments, the process is much simpler. Compare the rates of each provider, the services they provide, and make certain that you keep each and every receipt. That way, if a customer disputes a charge, you can produce the receipt and avoid a chargeback.

The number one fear of online shoppers is that virtual criminals will intercept their credit or debit card information and use it to charge items on their account. The problem is so pervasive that the Payment Card Industry Data Security Standard (PCI DSS) was introduced in 2006. Basically, it is a set of standards that all companies that sell goods on the internet must abide by.

PCI compliance is the first and most important step you can take to ensure that your customers will be protected from internet thieves. Not to mention that fact that businesses are permitted to advertise the fact that they are abiding by PCI DSS, which often increases traffic and sales.

About the Author

Mort Paulsen is a freelance writer who writes about a range of topics including merchant services and companies that offer them such as North American Bancard.

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